Spirit Airways has rejected yet one more acquisition bid from Frontier, which might’ve merged the 2 firms to create the fifth-largest airline within the US, as reported earlier by Reuters. In a submitting with the Securities and Change Fee, Spirit referred to as Frontier’s deal ”woefully inadequate financially” in comparison with the $2.9 billion settlement tossed out in 2022.
As proven in a sequence of emails made public within the submitting, Frontier first submitted its “compelling proposal” to purchase Spirit on January seventh in a deal valued at $2.1 billion. Nevertheless, Spirit CEO Ted Christie and board chair Mac Gardner responded by saying the advisors to Spirit’s bondholders “imagine your present proposal is so inadequate as to not advantage a counter.”
After some backwards and forwards between the 2 firms, Spirit finally rejected the provide in favor of its current restructuring plan that’s anticipated to drag the beleaguered airline out of chapter. “Whereas we recognize your continued curiosity and share your view of the logic of a possible transaction, your January 7 phrases (which haven’t been improved on within the final three weeks) are each insufficient and unactionable,” Christie and Gardner mentioned in a January twenty eighth e-mail.